Dáil Éireann Debate, Tuesday - 6 October 2009
256 Deputy Eamon Gilmore asked the Minister for Finance if his attention has been drawn to sporting clubs, which were granted tax exemption status and which are abusing the conditions under which the exemption was granted by using interest on a capital sum derived from the disposal of assets to defray day-to-day expenditure and thereby subsidise members’ annual subscriptions; and if he will make a statement on the matter. [33195/09]
Amharc ar fhreagraSection 235 of the Taxes Consolidation Act (TCA) 1997 gives an income tax exemption to sporting bodies, which have been approved by Revenue on the basis that the body has been established for, and exists for the sole purpose of promoting athletic or amateur games or sports. The exemption extends to the amount of the income of the approved body as has been, or will be, applied to the sole purpose mentioned.
Sections 610 and Schedule 15, Paragraph 37, TCA 1997 gives a capital gains tax exemption in respect of chargeable gains accruing to sporting bodies to the extent that the income of the sporting body is exempt from income tax or corporation tax as the case may be. Where a sporting body realises a capital sum from the disposal of an asset, the exemption applies only to the extent that the proceeds are applied for the sole purpose of promoting athletic or amateur games or sports.
The administration of tax exemptions for Sports Bodies is a matter for the Revenue Commissioners. It is understood that the detailed application of funds has to be considered by the Revenue Commissioners specifically, and in context, in each individual case, to determine whether any implications arise for the tax exemption or the body's approval by Revenue. It has been confirmed by Revenue that bodies granted sporting tax exemption are subject to periodic risk-focused review towards ensuring that the terms of the exemption continue to be fulfilled. All relevant matters, including adherence to any "use of income" clauses attached to the exemption, are considered in the context of such reviews.
If the Deputy has specific information in regard to abuse of the tax exemption conditions by any sporting body, then such information should be provided to the Revenue Commissioners for consideration and further investigation, as necessary.
